Last Update: January 05, 2023, 15:16 IST
If your employer is still not providing you gratuity then you can file a complaint with the district office of labor commissioner.
In this situation, the first thing you can do is send a legal notice to your employer.
You are entitled to gratuity by your company if you have worked there for 4 years, 240 days, part of which is directly deducted from CTC. The company has to pay you the amount of gratuity even if you leave after the stipulated period. In most of the cases, the process goes smoothly and the company gives you your gratuity on time. However, in some cases, the company may create problems in paying the gratuity. Let us discuss what steps you can take if your company refuses to give you the amount of gratuity.
In this situation, the first thing you can do is send a legal notice to your employer. If your employer is still not providing you gratuity then you can file a complaint with the district office of labor commissioner. Often an Assistant Labor Commissioner is appointed to investigate the matter. You must know that the Payment of Gratuity Act, 1972 protects the right of an employee to gratuity.
Your employer must pay gratuity to you within 30 days of the authority directing your company to do so. If the company still fails to do so, legal action can be taken. If the employer is found guilty, he can be jailed for 6 months to 2 years. However, in most cases, the employer is bound to pay the amount along with interest only for the delayed period. Apart from this, sometimes a fine is also imposed on the employer. A few years ago, in one such case in Madhya Pradesh, the court imposed a fine of Rs 1 lakh on the employer.
Gratuity is provided only in those companies where the staff is more than 10. These businesses must also complete the Gratuity Insurance process. This ensures that sufficient funds will be available when gratuity payments become due.
read all latest business news here